If you're thinking about financing a new car at our Ford dealership near Chicago, you likely have some questions that you want answered prior to signing the bottom line. This is only natural -- after all, outside of real estate, buying a car is one of the most significant financial transactions the average person will ever make. You want to go into this process with as much knowledge and understanding as possible.
That's where we come in. Kris Born, the Director of Finance at Heller Ford Sales, is here to provide some clear, straightforward answers to some of the most frequently asked questions regarding automotive financing. With twenty-plus years in the field, Kris is a trusted source for anyone looking to finance a Ford near Chicago. Here's his take on several common auto financing questions:
Car Financing Frequently Asked Questions
What are current interest rates to buy a car?
Interest rates can vary from lender to lender at any given time. Variables include your credit score, how much is being financed and your income-to-debt ratio. We work with all banks and credit unions to find the best rate possible for each car buyer!
How do I get a good car loan interest rate?
You need to have a good credit score to get the best interest rate. To do that, you need to pay all your bills on time, and it also helps to have previous loan history. A good income-to-debt ratio -- which measures how much you earn vs. how much you owe in a given month -- is beneficial as well.
How much of a down payment do I need to finance a car?
It depends on what you're trying to accomplish. If you want a certain monthly payment, you’ll likely have to put money down to reach that goal. In general, every $1,000 down equates to approximately $15 less per month on your payment.
What additional costs will I be responsible for when buying a new car?
You will always have your local/state taxes, as well as title, license and doc fees. Ask our finance team for more specifics.
How can I find the value of my trade-in?
Simply use our trade-in calculator to get a preliminary estimate of what your car may be worth. You can also include photos, mileage and VIN to help us determine your trade value.
Does my credit score impact my loan rate?
Yes, absolutely. The higher the credit score, the better your loan rate. Pay those bills and build your credit by taking out loans!
I have a low credit score -- can I still finance a car?
We will work hard to get you approved. By working with many different lenders, we have the capability and relationships to do our best to get you approved even with a low credit score. You can fill out our Ford financing application to see if we can get you approved.
I don’t have a credit history yet -- can I still finance a car?
Short answer, yes. We have been able to get some lenders to approve buyers without a credit history, but it's easier to get a loan if you have a co-signer with you to help get your credit started. We usually suggest a co-signer because it can help get you a lower interest rate and increase your odds of getting approved for a car loan.
What’s the best length for a car loan?
That depends on what you are trying to accomplish. The shorter the loan, the higher the payments, but the faster it gets paid off! The longer the loan, the lower the car payments will be. However, it will take many years to pay it off. We offer loans starting at 24 months all the way to 84 months in length.
Can you offer a better interest rate than my pre-approved rate?
It depends, as every situation is different. We have access to many lenders we can go to hoping to provide you with an even better rate than you were pre-approved for. That’s what we're here to do, after all -- save you money!
Can I reduce my monthly car payments down the road?
Yes, you can refinance to a lower interest rate at any time to change your car payments down the road!
Can I sell my car while I’m still paying it off?
Yes. When you sell your car, you’d just have to pay off the remaining balance on the loan (the bank can help you figure out that number). That balance can be transferred into the next car loan you get. For example, say you have a car with a trade-in value of $10,000 and you still owe $4,000. The difference of $6,000 would be taken off the final price of your new vehicle purchase.
Can I add a warranty when I buy a car?
Of course! We offer extended warranties on nearly every vehicle you can purchase.
More About Kris Born, Director of Finance at Heller Ford:
Kris graduated from ISU and started his professional life in central Illinois. With over 20 years of industry experience and a knack for making things easy on customers, Kris is happy to help customers get the vehicles they need. On a nice day, it’s tough for him to choose between the golf course and his Harley, but if you ask him, neither hobby compares to spending time with his daughter. You can reach Kris at [email protected].
